AT&T spending big bucks to boost service

Commentary: With iPhone expected at Verizon, is it too late?

SAN FRANCISCO (MarketWatch) — AT&T Co. is spending nearly $2 billion to buy wireless spectrum, or the rights to certain airwaves, of a failed Qualcomm Inc. venture, in a move to improve its mobile service.

The carrier has been working to expand its over-burdened network ever since it became the exclusive carrier for Apple Inc.’s
AAPL, -1.53%
iPhone. Even so, AT&T
T, -1.14%
has suffered from the wrath of consumers, and earlier this month, Consumer Reports dubbed its mobile service the worst. See AT&T news here.

Early next year, though, things could change. The iPhone is widely expected to be offered on Verizon Communications Inc.’s
VZ, -0.51%
network, a move which could shift some data traffic to Verizon. It may also unleash a whole batch of new data intensive users on Verizon who have been waiting to buy an iPhone, but wanted a different carrier, like Verizon. It’s feasible that Verizon could get some of AT&T’s traffic problems, even though it has also been building out its network in anticipation of the iPhone.

AT&T said it’s acquiring this spectrum as part of its long-term planning. But the company is likely hoping to boost its service with the new spectrum for a new 4G network, and possibly stave off the looming departures of some of its customers, who may jump ship for Verizon.

The question is, even with the promise of a new network, will it be too late?

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.